Progressive Tax System

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Recommended: Benefits of progressive taxation

Currently, America uses a progressive tax system. A progressive tax system means that the percentage of income an individual or household pays in taxes will increase with increasing income. Using the progressive tax system creates a bias towards the wealthy, and then starts class. It will be helpful in many ways by distributing the tax problem, but high rates discourage an activity, and high progressive taxes discourage wealth creation. Also, a progressive tax system encourages Americans to pay their responsibility to the government equally. When those who make low incomes get tax breaks, it is like they don't contribute to the government. The rich already pays so many taxes that it is almost like they are funding the government as a whole. …show more content…

It is the best way to establish a better trust of the rich and promote the economy. A simple, low flat tax of 7% would cut nearly all Americans taxes. It would add more than $500 billion to our gross domestic product, which also will lead to economic growth. It would also open up resources in the private market that could be used for investments that grow the economy, and improve the standards of living for Americans. A flat tax creates a broad base, and minimizes economic distortions, and makes it equally and fair, which means all Americas, will pay the same percentage of income. Another reasons that flat taxes are the best system because they force the government to think about what they spend on. The government gets most of its money from citizens when they pay their taxes. Allowing the government to have variable tax rates allows them to spend money wastefully, while having a flat tax would force the government to think about the way they spend. Lastly, the flat tax system would allow business owners to be able to plan for their business more. If they know that the tax rate would be 15% for the next 10 years, they would be able to financially plan out their income rates and decide how they want to spend their money, having less money in the bank because they will know that it will not need to be

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